Key facts
- M/I Homes and Meritage Homes each contributed half the cost of a $7.6 million bridge.
- The bridge connects the 496-home Colony at Cole Springs subdivision to Buda, Texas's downtown commercial core.
- The partnership addresses the challenge of balancing infrastructure investment with housing affordability.
- The development agreement also included road upgrades, a new traffic signal, and improved creek access.
- A municipal utility district and a tax increment reinvestment zone were utilized to finance infrastructure costs.
In a public-private partnership aimed at addressing infrastructure costs associated with new housing developments, M/I Homes and Meritage Homes have jointly funded a $7.6 million bridge in Buda, Texas. The bridge connects their new 496-home master-planned community, The Colony at Cole Springs, to the city's main commercial corridor.
This collaboration highlights the ongoing challenge for homebuilders to balance the need for public infrastructure investments with maintaining home price affordability. Derek Baker, Austin Area President at M/I Homes, emphasized the delicate balance required to provide community benefits like improved roads and bridges while keeping housing accessible.
The development agreement, finalized in 2020 after discussions began in 2018, also included upgrades to a main road, a new traffic signal, and improved access to local amenities. The project was supported by the creation of a municipal utility district (MUD) to finance infrastructure costs through property taxes paid by residents, and a tax increment reinvestment zone that returns 40% of property taxes from the project to fund improvements.
Meritage Homes' Bryan Crouch noted that the scale of the nearly 500-home community made such a significant infrastructure investment feasible by allowing cost-sharing. Buda City Manager Micah Grau stated that the city's limited ability to fund major projects independently made the partnership with builders essential for timely development. The new bridge is expected to support existing small businesses and facilitate continued growth in Buda's downtown area.